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AutoCanada Inc T.ACQ

Alternate Symbol(s):  AOCIF

AutoCanada Inc. is a Canada-based multi-location franchised automobile dealership company. It offers a diversified range of automotive products and services, including new vehicles, used vehicles, vehicle leasing, vehicle parts, vehicle maintenance and collision repair services. Its segments include Canadian Operations and U.S. Operations. It operates over 83 franchised dealerships, comprised of 28 brands, in eight provinces in Canada as well as a group in Illinois, United States. It sells Acura, Alfa Romeo, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, FIAT, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Lincoln, Mazda, Mercedes-Benz, MINI, Nissan, Porsche, Ram, Subaru, Toyota, Volkswagen, and Volvo branded vehicles. Its Canadian Operations segment operates three used vehicle dealerships and one used vehicle auction business supporting the Used Digital Division, 13 RightRide division locations, and 11 stand-alone collision centers within its group of 27 collision centers.


TSX:ACQ - Post by User

Bullboard Posts
Comment by PAGODA5on May 17, 2014 8:33pm
234 Views
Post# 22573503

RE:Please show me...

RE:Please show me...Any stock has downside however, this stock has much upside and I will tell you why.  I actually own only a small position now so if it does come down a bit, I will buy more.  

I believe you are underestimating the amount of growth that is coming out of Western Canada in the next decade.  I live in Saskatchewan and I know the owners of two major dealerships here - Mainline Motors in Watrous and Bennet-Dunlop Ford in Regina.  I can tell you point blank, the revenues earned by these dealerships far exceed your numbers and I would guess that is the same for most of these dealerships in Alberta as well.  

The boys in these provinces love their trucks and they spend big to get the truck they want.  Further to that, these dealerships have service centres and autobody shops that make gobs of money.  

If you believe that Sask. and Alberta are going to go gangbusters for the next 10 years as I do, then Autocanada is buying a goldmine with gold going up up.  You can postulate your numbers but the fact is if you bet on Western Canadian prosperity, as I do, and more trucks being bought, then you should price this company accordingly.  They will have the ability to swap inventory, move $$$ where it is needed easily, and take advantage of more and more dealer incentives as they move more volume.  


Bullboard Posts